Pet Supplies Plus Essay

743 Words2 Pages

Introduction

Background: The purpose of this report is to persuade the client, Professor Clifford Keevan, to invest in a Pet Supplies Plus franchise, rather than to establish his own pet store. Since the client has no experience with designing pet products or running his own business, it would seem foolish for him to disregard the business entity choice of a franchise. As the client’s financial advisor, it is my responsibility to inform him of the general opportunities and challenges associated with franchising. Due to the continual economic expansion of the pet industry, I do not discourage the client from investing within the pet industry. Since Pet Supplies Plus, an alternative pet retailer, is expanding faster than the “traditional” pet store distributors like PetSmart or Petco, I am inclined to suggest this establishment to the …show more content…

One of the best advantages of becoming a franchisee is that one can own his own business without having to experience the failure that is prevalent with startups. In addition, a franchisor provides an entrepreneur with a successful business plan and a name that is recognized by consumers. As a result, the franchisor will normally provide the franchisee with the necessary training to help the overall business to succeed. Since Professor Keevan has no prior experience with running a business, the benefits he would derive from owning a franchise are quite obvious. While the startup costs to obtain some franchises can be quite excessive, some franchisors do offer in-house lending to their franchisees. This means that franchisees will not have the burden of seeking out third-party lenders to cover their startup expenses (Bach). Depending on the startup costs associated with acquiring a Pet Supplies Plus franchise, this could be useful for Professor Keevan to financially obtain a

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